Correlation Between Gansu Jiu and Guangzhou Haige
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By analyzing existing cross correlation between Gansu Jiu Steel and Guangzhou Haige Communications, you can compare the effects of market volatilities on Gansu Jiu and Guangzhou Haige and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gansu Jiu with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Guangzhou Haige.
Diversification Opportunities for Gansu Jiu and Guangzhou Haige
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Guangzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm and Gansu Jiu is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gansu Jiu Steel are associated (or correlated) with Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Gansu Jiu and Guangzhou Haige
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 1.43 times less return on investment than Guangzhou Haige. But when comparing it to its historical volatility, Gansu Jiu Steel is 1.29 times less risky than Guangzhou Haige. It trades about 0.04 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 979.00 in Guangzhou Haige Communications on September 12, 2024 and sell it today you would earn a total of 294.00 from holding Guangzhou Haige Communications or generate 30.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Gansu Jiu Steel |
| Guangzhou Haige Comm |
Gansu Jiu and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Guangzhou Haige
The main advantage of trading using opposite Gansu Jiu and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Guangzhou Haige can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guangzhou Haige will offset losses from the drop in Guangzhou Haige's long position.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Rongsheng Petrochemical Co |
| Guangzhou Haige vs. Gansu Jiu Steel | Guangzhou Haige vs. Shandong Mining Machinery | Guangzhou Haige vs. Aba Chemicals Corp | Guangzhou Haige vs. BlueFocus Communication Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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